Commodity markets see downward trend last week

ISTANBUL

Commodity markets saw an accelerated downward trend last week due to continued uncertainties over the Fed’s interest rate cut timing.

The Fed’s Beige Book showed that the overall outlook worsened slightly with conditions varying across sectors and regions.

Precious metals see mixed course

Gold prices fell on the uncertainties over the Fed’s decision and the rise in the US 10-Year Bond, analysts say.

Silver prices hiked over increased investor interest and supply concerns, as slower mine production growth and strong industrial demand triggered concerns that the supply lagging behind demand could cause a shortfall in the silver market.

Analysts noted that China might increase silver imports, which is used in solar panel, automobiles, other electronics, and jewelry.

The global platinum deficit this year cause its prices to go up while palladium prices fell on estimates that investment demand in the industrial field will go down.

Given these changes, the ounce price of gold lost 0.4%, and palladium 5.2%, while silver gained 0.1%, and platinum 0.9%.

Base metal prices fell on concerns that China’s plan for local governments to access housing at reasonable prices, while copper prices hit record highs.

Considering this, the pound price of copper fell 2.8%, nickel 3%, lead 0.8%, and zinc 2.2%, while aluminum hiked 0.1%.

Concerns over demand in the US impacted Brent crude oil prices, while strong demand for natural gas in Asia bumped up the prices.

In view of this, the barrel price of Brent crude oil fell 0.1%, while natural gas traded on the New York Mercantile Exchange in British thermal units (MMBtu) climbed 2.4%.

Corn prices affected by declining oil prices

Wheat prices decreased on increased rainfall expectations in Russia, positively impacting production.

Corn prices were affected by demand concerns amid low oil prices.

Based on these changes, the bushel price of wheat traded on the Chicago Mercantile Exchange declined 2.7%, corn 4%, soybeans 3.5%, and rice 3.7%.

Cotton and sugar prices fell on concerns that the Fed’s rate cut decision may be postponed.

In light of this news, the pound price of cotton fell 5%, and sugar 1.2%, while coffee soared 1.9%, and the ton price of cocoa rose 12.50%.

*Writing by Emir Yildirim